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Woodland Park officials hear how DDATIF ends in 2032 and what extension would mean
Summary
At a joint work session, the DDAgeneral counsel explained the Downtown Development AuthorityTIF was created in 2002 and will end by operation of law in 2032 unless city council extends it; a 20-year statutory extension would default to a 50/50 split of future increment with other taxing entities and the DDA's debt is scheduled to be paid off in 2028, freeing roughly $400,000 a year for projects.
Marcus McCaskin, general counsel to the Woodland Park Downtown Development Authority, told the council and DDA board that the authoritywas formed in 2001 and the foundation plan approved in 2002 started a 30-year tax-increment financing (TIF) period that "will, by operation of law, just automatically kind of terminate, at the end of the 30 year period in in 2032." McCaskin characterized the session as educational and said he was there to answer questions.
McCaskin explained a 2008 change in state law allows a city council to extend a DDA's TIF period for an additional 20 years, but that extension carries a default statutory allocation: the DDA would capture 50% of new increment and the remaining 50% would be distributed pro rata to other taxing entities — the city, county, school district, fire district and health services district. He said the city could negotiate different splits only by agreement with the affected taxing districts.
Council members pressed staff for numbers. Aaron presented projected TIF property-tax revenues, showing roughly $1,104,000 for 2026 climbing to about $1,200,000 by 2030 (about 3% annual growth). McCaskin noted two outstanding DDA bond series issued in 2008 and 2012, with roughly $385,000 of annual increment currently paying debt service; both bond series are scheduled to be defeased in 2028. "After that, then all the revenue then just goes into the DDA general fund," he said, describing an estimated post-2028 increase of roughly $400,000 annually that could be applied to foundation-plan priorities such as pedestrian and public-safety improvements.
McCaskin said city council does not need to act to cause the increment to end; the TIF simply lapses by statute unless extended within the final 10-year window. He also outlined alternatives: the city could dissolve the DDA after obligations are satisfied, or pursue other funding such as an ad valorem property-tax within the DDA boundaries subject to voter approval.
Council members said they found the session informative and indicated no immediate desire to extend the TIF. Several members expressed a preference to identify eligible downtown projects to spend existing and near-term funds rather than automatically return fund balances to taxing entities at sunset. The work session concluded without any required formal action; council and DDA broke for the regular meeting.
